PEIA plans to cut $50 million, director says

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Public Employee Insurance Agency executive director Ted Cheatham told legislators Wednesday that the PEIA Finance Board had no choice but to impose about $50 million in benefits cuts for the 2017-18 plan year, since no additional funding for premiums was expected.

In December, the board approved the cuts, primarily imposing higher deductibles and out-of-pocket maximums for insurees, after then-Gov. Earl Ray Tomblin notified the board there would be no increase in state funding for employer premiums.

The 2017-18 budget bill that Gov. Jim Justice submitted on Feb. 8 also does not provide additional funding for premiums.